# Dividend-Point Index

`D03-F04-A05` · Index and Benchmark Engineering → Return Variants · archetype `record-transform` · difficulty 3/5 · verification **verified**

Full page: https://docs.thefintechbuilder.com/index-and-benchmark-engineering/return-variants/dividend-point-index/
Agent skill: `npx skills add IslamBaraka90/Fintech-Algorithms-Library` — https://docs.thefintechbuilder.com/guides/agent-skill/

## Install and import

```bash
npm install fintech-algorithms
```

```ts
import { calculate } from "fintech-algorithms/index-and-benchmark-engineering/return-variants/dividend-point-index";
```

## Signature

```ts
calculate(data)
```

Expresses dividends in index points rather than currency, which is how dividend futures and swaps are quoted. Converting through the divisor is what makes a per-share payment comparable to an index level.

## Parameters

| Name | Type | Required | Notes |
| --- | --- | --- | --- |
| `data` | `{ events: DividendEvent[]; divisor: number }` | yes | `events` carry per-share dividends and index shares; `divisor` converts the aggregate into points. |

## Returns

`{ ids, pointContributions, dividendPoints }`

Each constituent's contribution in points and the total.

## Errors

- When the divisor is not positive — throws

## Complexity

Time `O(n)`, space `O(n)`.

## Worked example

This is the worked example published in the article, replayed by the test suite on every run. The output cannot drift.

### Input

`data`:

```json
{
  "events": [
    {
      "id": "A",
      "dividend": 1.2,
      "indexShares": 2000000,
      "floatFactor": 0.8,
      "fx": 1
    },
    {
      "id": "B",
      "dividend": 0.5,
      "indexShares": 3500000,
      "floatFactor": 0.7,
      "fx": 1
    },
    {
      "id": "C",
      "dividend": 2,
      "indexShares": 500000,
      "floatFactor": 1,
      "fx": 1.1
    }
  ],
  "divisor": 1000000
}
```

### Call

```ts
calculate(data)
```

### Returns

object with 3 fields: ids, pointContributions, dividendPoints

```json
{
  "ids": ["A", "B", "C"],
  "pointContributions": [1.92, 1.225, 1.1],
  "dividendPoints": 4.245
}
```

## Verification and provenance

Tier: **verified** (via input-expected).

The worked example below is the figure published in this algorithm's article, replayed and asserted by the test suite on every build. The arithmetic cannot drift without the build failing.

Both tiers guarantee the signature. Full explanation: https://docs.thefintechbuilder.com/guides/verification/

Generated from the docs.json payload shipped inside fintech-algorithms@0.13.1.
The signature and parameter list are checked against the compiled implementation at build time,
so a description that contradicts the code fails the build rather than reaching this file.

## Links

- Article (how it works, step by step): https://thefintechbuilder.com/index-and-benchmark-engineering/return-variants/dividend-point-index/
- Implementation source: https://github.com/IslamBaraka90/Fintech-Algorithms-Library/blob/main/src/index-and-benchmark-engineering/return-variants/dividend-point-index/impl.ts
- Package on npm: https://www.npmjs.com/package/fintech-algorithms
- Domain index for agents: https://docs.thefintechbuilder.com/index-and-benchmark-engineering/llms.txt